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Business, 10.03.2020 00:07 kathleensumter5100
As a firm takes on more debt, its probability of bankruptcy . Other factors held constant, a firm whose earnings are relatively volatile faces a chance of bankruptcy. Therefore, when other factors are held constant, a firm whose earnings are relatively volatile should use debt than a more stable firm. When bankruptcy costs become more important, they the tax benefits of debt.
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As a firm takes on more debt, its probability of bankruptcy . Other factors held constant, a firm wh...
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